Stability of Italian government remains risk for euro zone: Fitch

The Italian flag waves in front of The "Altare della Patria" also known as "Vittoriano" downtown Rome, Italy, March 23, 2016. REUTES/ Stefano Rellandini

LONDON (Reuters) - The stability of Italy’s government remains a source of risk for the euro zone, rating agency Fitch said on Thursday.

“Our biggest concern in Italy is that we might not get a stable government,” Fitch analyst Ed Parker said at a conference hosted by the firm.

“Also, we can’t completely discount the bigger downside risk of a eurosceptic party being part of a coalition.... while populism has receded in Europe this year, Italy is a battle that remains to be fought,” Parker said.